What's on the Line as the US Grants Saudis Access to Advanced AI Chips

President Donald Trump's administration has shifted US artificial intelligence policy toward two oil-rich Middle Eastern states. It has cleared the way for Saudi Arabia and the United Arab Emirates to purchase chips from Nvidia and Advanced Micro Devices, which are considered cutting-edge when it comes to developing and operating artificial intelligence software and services.

Previously, the US imposed restrictions on delivering advanced technology to the region as part of broader controls on the spread of US AI-related technology.

These restrictions have been motivated by national security concerns and, more broadly, a desire to keep the capabilities out of China's hands.

What restrictions has the Trump administration lifted? 

Saudi Arabia's state-run investment firm has established Humain, which is spearheading the kingdom's push into artificial intelligence infrastructure.

According to a deal announced during Trump's visit to the Gulf region, Humain will receive "several hundred thousand" of Nvidia's most advanced processors over the next five years, beginning with 18,000 of its cutting-edge GB300 Grace Blackwell products and InfiniBand networking technology.

The Trump administration has not formally stated that it has granted permission to export the technology, but the president was an active participant in the announcement of the deals.

According to reports, Global AI, a US technology venture, plans to collaborate with Humain in an agreement worth billions of dollars.

Amazon.com and Humain will invest $5 billion in a "AI zone" in Saudi Arabia. Cisco Systems, headquartered in California, is also collaborating with Humain and G42, an AI company based in Abu Dhabi, the UAE's capital.

Trump administration is considering a deal that would allow the UAE to import more than a million advanced Nvidia chips.

The agreement would allow the UAE to import 500,000 of the most advanced chips annually from now until 2027. According to the reports, one-fifth of the funds would be set aside for G42, with the remainder going to US companies building data centers in the Gulf.